Estonian state-owned railway transport company EVR Cargo concluded a €17.8 million contract for the purchase of 300 container platforms and 200 open wagons, the first part of a plan to invest a total of €35 million in the purchase of rail cars, the company announced.
"Rail car rental is a growing business trend with which we have more intensively engaged since last summer," said EVR Cargo board chairman Raul Toomsalu. "In one year we have increased rail car rental income by 157 percent. We estimate that the positive trend will continue, and so we consider investing in rail cars reasonable and plan to continue to do so."
While previously such purchases have been made via intermediaries, EVR Cargo is to purchase the rail cars directly from two Russian factories. According to plans, the first rail cars are to be handed over to EVR Cargo at the end of June and the last ones in August.
"If the deal in question goes according to plan, then we will begin realizing the next stage of our investment plan," Toomsalu commented.
EVR Cargo intends to rent out its container platforms to major international customers serving freight transport between China and Europe, while the open wagons are to be rented out for the transport of bulk goods on the growing Russian domestic market.
EVR Cargo is an Estonian state-owned railway transport company whose primary business trends include freight transport, locomotive and rail car repair and rail car rentals. Together with the new rail cars, EVR Cargo's rolling stock consists of 66 locomotives and 3,022 rail cars.
Last year, EVR Cargo employed 684 people.
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